Gov. John Hoeven will ask legislators to create a $40 million state college tuition grant program.

The money, a more than sixfold increase over an existing program, would come from the state’s general fund.

Hoeven said Friday that, if enacted, his Aid for College Tuition-North Dakota program, known as ACT-ND, would provide up to $2,000 per year to 11,000 students who qualify under state needs-based limits. Average assistance would be $1,800...

The governor said combining the average of $1,800 per year from his proposed expanded state grant program with average federal Pell grants of $2,400 per year, would provide students average annual assistance of $4,200 — enough to cover all tuition at two-year state colleges and at least 80 percent of tuition at the state’s four-year schools.

The governor’s office says his new program would raise North Dakota’s state grant dollars, based on population, from 45th to 14th among 52 U.S. states and territories.

But Sen. Tim Mathern, D-Fargo, who is running against Hoeven for governor, said Hoeven’s plan doesn’t go far enough.

If elected, Mathern has said he would propose reimbursing graduating students for the full cost of tuition provided they take a job in North Dakota for eight years, with those who stay for less time getting a smaller amount.

I think both ideas are interesting. Initially I read this wrong and I thought it said "graduate" students would get their tuition back, which didn't make sense since most of us get tuition waivers anyway. I think an incentive for students to stay in ND is a good thing, but the problem is that there aren't a lot of jobs for highly trained people here, and graduating college students aren't in the best place financially to start their own businesses (as good for everyone as that would be).

Developments have outrun this pessimism. North Dakota is short of workers now. The state Commerce Department estimates that there are as many as 14,000 jobs available here.

Hoeven reckons that the state has jobs for many students, and he sweetens their prospects with grants for those who train for jobs in demand.

Paradoxically, however, Hoeven’s plan is aimed at students coming from families with lower incomes, since it’s based on need. But they’d get the money when they needed it, to pay current tuition costs.

Mathern would reimburse everybody, no matter the income, rich or poor alike. His plan would reimburse the full cost of tuition, though. Hoeven’s plan provides only about half the money needed to attend UND or NDSU, the state’s research institutions.

Hoeven’s plan is therefore cheaper, about $40 million by his estimate. Mathern’s would cost less initially, about $11 million in 2010, its first year, but $89 million annually after eight years. Again, these are the candidate’s own estimates.

But cost hasn’t been part of the debate because North Dakota can clearly afford either program.

In fact, the state could afford more. The current budget surplus is estimated at about $1 billion, and revenue is pouring in, chiefly from sales taxes and taxes on oil production. Although the state’s economy seems to be slowing a little bit, there is no apparent threat to the state treasury.

The candidates should therefore think bigger.

Some states, Georgia notable among them, provide higher education tuition free to qualified state residents, and that would be an option in North Dakota.

Plus, the state is rich enough to provide tuition incentives to students from outside the state. North Dakota could offer scholarships, even grants, to nonresident students, as well.

There is a real opportunity right now for the state with this huge surplus. Lets expand the jobs and education and grow ND!

It may sound counterproductive to some, but I think ND needs to start attracting more out of state students from across the nation and world. These students provide a huge positive economic impact on the state...and benefit the state in many other ways, all for relatively little cost to the state.

I want to see ND become an education powerhouse. Businesses will take notice.